Key Takeaways:
- The FTX bankruptcy estate settled with Bybit for $228 million to recover funds for creditors, ending a 2023 lawsuit.
- The settlement includes reclaiming $175 million in digital assets and $53 million in BIT tokens.
- Court approval is pending, with a hearing scheduled for November 20, 2024.
The FTX bankruptcy estate reached a $228 million settlement with Bybit, resolving a lawsuit aimed at recovering funds to repay former customers and creditors.
As part of the settlement, FTX will reclaim $175 million in digital assets held on Bybit and sell $53 million in BIT tokens to Mirana Corp, a Bybit affiliate.
Although FTX’s legal team believes their claims were valid, they noted that continued litigation would be costly and complex.
This agreement is pending court approval, with a hearing set for November 20, 2024.
Originally, FTX had filed a $1 billion lawsuit against Bybit and Mirana in 2023, alleging that they withdrew $327 million in assets before FTX’s collapse, benefiting from special “VIP” access.
This lawsuit is part of broader bankruptcy proceedings for FTX.
Recently, Judge John Dorsey approved FTX’s reorganization plan, leading FTX investors to drop their case against its former legal representatives, Sullivan & Cromwell, who creditors claimed continued work with FTX despite signs of misconduct.